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Study Resources (Accounting)

21) For replacement of inventories and assets destroyed by fire or other disasters, an organization needs A) stand-by facilities. B) adequate insurance coverage. C) source data automation. D) All of the above are correct. 22) Overproduction or underproduction can be a threat to an organization. To which process or activity.
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51) What control should be put in place that assigns responsibility for EFT payments made to vendors? A) Encrypt all EFT transmissions. B) Time stamp all EFT transactions. C) Establish a control group to monitor EFT transactions for validity and accuracy. D) Number all EFT transactions. 52) Which of the following threats is not.
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31) Which auditing technique will not assist in determining if unauthorized programming changes have been made? A) Use of a source code comparison program B) Use of the reprocessing technique to compare program output C) Interviewing and making inquiries of the programming staff D) Use of parallel simulation to compare.
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41) Wee Bee Trucking determines the cost per delivery by identifying variables as cost drivers, and allocating overhead accordingly. This is an example of ________ costing. A) job-order B) unit-based C) activity-based D) process 42) In activity-based costing, expenses associated with the purchase of health care insurance for employees are ________ overhead. A) batch-related B) product-related C) companywide D).
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21) Check digit verification is an example of a(n) A) data transmission control. B) output control. C) processing control. D) input control. 22) This ensures that the input data will fit into the assigned field. A) Limit check B) Range check C) Size check D) Validity check 23) This tests a numerical amount to ensure that it does not.
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11) A system that employs various types of advanced technology has more ________ risk than traditional batch processing. A) control B) detection C) inherent D) investing 12) Control risk is defined as the A) susceptibility to material risk in the absence of controls. B) risk that a material misstatement will get.
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41) What is the primary purpose of computer audit software? A) eliminate auditor judgment errors B) assist the auditor in retrieving and reviewing information C) detect unauthorized modifications to system program code D) recheck all mathematical calculations, cross-foot, reprocess financial statements and compare to originals 42) The scope of a(n) ________ audit encompasses.
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11) The production cycle document that specifies the quantity of each product to be produced and when production should begin is the A) bill of materials. B) bill of lading. C) master production schedule. D) operations list. 12) What information is necessary to create the master production schedule? A) engineering.
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51) In addition to identifying and dealing with defective products before they reach customers, quality management is concerned with initiating process changes that will reduce the number of defective units produced. All other things held constant, a decrease in the number of defective units will increase throughput by A) increasing productive.
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1) In organizations with at least basic segregation of duties, the credit manager reports to the ________ and the treasurer reports to the ________. A) controller; vice president of finance B) treasurer; controller C) marketing manager; vice president of finance D) treasurer; vice president of finance 2) In the revenue.
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51) ________ involves copying only the data items that have changed since the last partial backup. A) Archive B) Cloud computing C) Differential backup D) Incremental backup 52) ________ copies all changes made since the last full backup. A) Archive B) Cloud computing C) Differential backup D) Incremental backup 53) The maximum amount of time between backups is.
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21) Which of the following is the first step in the risk-based audit approach? A) Identify the control procedures that should be in place. B) Evaluate the control procedures. C) Determine the threats facing the AIS. D) Evaluate weaknesses to determine their effect on the audit procedures. 22) Determining whether the necessary control procedures.
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41) What is the most effective way to ensure information system availability? A) High bandwidth B) Maintain a hot site C) Maintain a cold site D) Frequent backups 42) Concerning system availability, which of the following statements is true? A) Human error does not threaten system availability. B) Proper controls can maximize the risk of threats causing.
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71) The document below would be known as what by Alpha Omega Electronics? A) Receiving report B) Purchase order C) Purchase requisition D) Packing slip 72) Which of the following would be the best control to prevent receiving department employees from stealing inventory and claiming the ordered quantity wasn't received from the vendor? A) Reconcile quantity.
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31) This control ensures that the correct and most current files are being updated. A) Cross-footing balance test B) Data matching C) File labels D) Write-protect mechanism 32) This batch processing data entry control sums the number of items in a batch. A) Financial total B) Hash total C) Record count D) Sequence check 33) This data entry.
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60) Explain why the auditor's role in program development and acquisition should be limited. 61) How and to whom does an auditor communicate the audit results? 62) Audit tests and procedures traditionally have been performed on a sample basis. Do options exist for auditors to test significantly more (or all).
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1) The AIS compiles and feeds information among the business cycles. What is the relationship between the revenue and production cycles regarding the exchange of information? A) The revenue cycle provides sales forecast and customer order information to the production cycle, but the production cycle sends information back to revenue.
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51) An auditor creates a fictitious customer in the system and then creates several fictitious sales to the customer. The records are then tracked as they are processed by the system. The auditor is using A) an integrated test facility. B) the snapshot technique. C) a system control audit review file. D) continuous.
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21) Stepanek Sales and Service provides free coffee to employees. Stepanek arranged with Ingebrigtson's Joe to deliver as many coffee packages, sugar, creamer, and filters as needed each week. Ingebrigtson's sends a monthly invoice for Stepanek to pay. This arrangement is best described as a A) blanket purchase order. B) set.
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1) Auditing involves the A) collection, review, and documentation of audit evidence. B) planning and verification of economic events. C) collection of audit evidence and approval of economic events. D) testing, documentation, and certification of audit evidence. 2) What is not a typical responsibility of an internal auditor? A) helping.
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21) A company should check inventory quantities before accepting a sales order for all the following reasons except to A) verify the accuracy of the perpetual inventory records. B) inform the customer about availability and delivery times. C) know which items may need to be back ordered. D) update inventory records.
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61) Which of the following is true? A) Cloud computing is a control technique for system availability. B) Cloud computing eliminates the need for backup of applications and data. C) Cloud computing refers to the practice of storing application files and backup data on satellites 'in the clouds'. D) Cloud computing eliminates the.
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